Whereas, during the pandemic, the construction sector was not put on hold, as was the case in other industries, last year this sector faced a different situation, everything unfolded uncharacteristically, in the context of the war on the border with Ukraine and the high price variation in the field of construction materials, a pattern which did not change at the start of this year, either, according to Marian Ciupitu, General Manager of Terano Construct.

In an interview, he told us that, in his opinion, if we access the PNNR funds, this year can be saved.

Reporter: How do you assess the evolution of the real estate market and of the construction sector in the current macro-economic context (high inflation, high interest rates, energy crisis)?

Marian Ciupitu: Starting from the year 2020, the construction market in Romania has undergone various transformations, thus observing the general trend of the global economy. Whereas, during the pandemic, the construction sector was not put on hold, as was the case in other industries, last year, our sector faced a different situation; everything unfolded uncharacteristically, in the context of the war on the border with Ukraine and the high price variations in construction materials, a pattern which did not change at the start of this year. The rise in construction material prices, the fluctuations in the fuel and energy area, the policy of granting real estate loans have, in themselves, incurred a reduction of the flow in residential constructions. However, Terano Construct has an advantage, namely that the projects we manage are in the area of office-type developers and in the retail area, which have maintained their growth rate. We do, nevertheless, experience a drop in investments, in projects, but we are persuaded that, if we access the funds from the National Recovery and Resilience Plan (PNNR), this year can be saved.

Reporter: How is your cooperation with the banks?

Marian Ciupitu: Our com­pany works with banks to a rather small extent, particularly as we do not operate in a system in which we create the business using bank loans. Thus, the interaction between Terano Construct and the banks in Romania is fairly limited.

Reporter: How close do you estimate that a new real estate crisis is?

Marian Ciupitu: Having in view the fact that we specialize in general contractor projects and services, civil engineering works, industrial constructions, repair and maintenance of civil constructions, repair and maintenance of indus­trial buildings, interior improvements, thermal insulation, water insulation, it is quite difficult for us to experience the impact of a real estate crisis, because the investors behind our projects have much better plans in place, and a potential crisis cannot destabilize them as easily as in the residential area, where the surprise factors are much more numerous.

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